"Anything that causes lenders and service companies to act fairly is a good thing," Cuban said in a statement to Business Insider about Obama's plan. "The challenge is that you can't subsidize or forgive existing debt without very strict rules. Otherwise it allows schools to tell future students not to worry. They too will get some portion forgiven. Which in turn gives the school more leeway to raise tuition."

Skyrocketing student debt has become a big talking point for Cuban. A few years ago, he even bought the domain collegedebt.com, which publishes a live update of how much college loan debt is held by students. The total is just over $1.3 trillion.

This debt ultimately will outweigh most of the potential benefit you're getting from the college education, Cuban said.

"What you thought you were going to get in quality of life by going to that college," Cuban said, "you've just undermined with the amount of debt you're taking on."